Ref. Soya oil settled up 0.03% at 673.2 as slow arrivals of southwest monsoon delayed sowing process of the bean in the key growing region across the country. However, scrapping of custom duty from RBD Palm oil may reduce the demand for refine soy oil. India's Finance Minister Arun Jaitley last week scrapped import duty on RBD palm oil in the Budget. Private weather forecasters such as Skymet said India could be heading towards a drought as some parts of central India, Gujarat and Rajasthan did not receive rainfall.

The agency will pronounce its verdict on drought in the last week of July as the sowing window may be over by then. US markets firmed up on some support from Chinese demand at these low levels. The soy oil remained under pressure due to excess supplies from imports. As per Solvent Extractors’ Association of India (SEA) data bank, there has been a significant increase in imports of Soy oil, sunflower oil & Rape oil and drop in imports of Palm oil, for last seven months of edible oil marketing year (Nov - Oct). Oilmeal exports have almost halved to 153,761 tonne in May from 298,310 tonnes in the same period last year.

The drop was largely due to a sharp spike in soyabean prices, leading to a delay in crushing, and lower availability of oilmeal for exports. At the Indore spot market in Madhya Pradesh, soyoil was steady at 681.55 rupees per 10 kgs. Technically market is under short covering as market has witnessed drop in open interest by -2.48% to settled at 120925 while prices up 0.2 rupee, now Ref. Soya oil is getting support at 671 and below same could see a test of 669 level, And resistance is now likely to be seen at 676, a move above could see prices testing 679.

Trading Ideas:

Ref. Soya oil trading range for the day is 669-679.

Ref soyoil ended with gains as slow arrivals of southwest monsoon delayed sowing process of the bean in the key growing region.

However, scrapping of custom duty from RBD Palm oil may reduce the demand for refine soy oil.

Oilmeal exports have almost halved to 153,761 tonne in May from 298,310 tonnes in the same period last year.

At the Indore spot market in Madhya Pradesh, soyoil was steady at 681.55 rupees per 10 kgs.